Thirty-One Members of Congress Call Upon Pentagon to Develop Plan for Processing Deep-Sea Polymetallic Nodules

Rhea-AI Summary

TMC the metals company Inc. (Nasdaq: TMC) is an explorer of the world’s largest estimated undeveloped source of critical battery metals. The company is involved in deep-sea polymetallic nodule collection and processing, with a focus on securing key energy transition metals and closing national security vulnerabilities. TMC has received support from Members of Congress, including the House Armed Services Committee and former Military leaders, as well as bipartisan coalitions, urging the U.S. Government to assess domestic processing of seafloor polymetallic nodules.

• In a letter to Secretary of Defense Lloyd Austin III and the Pentagon, thirty-one Members of Congress urged the Department of Defense to “explore every avenue to strengthen our rare earth and critical mineral supply chains”, emphasizing “the importance of evaluating and planning for seabed mining as a new vector of competition...”.
• In June, the House Armed Services Committee directed the Assistant Secretary of Defense for Industrial Base Policy “to assess processing of seabed resources of polymetallic nodules domestically” under the House version of the National Defense Authorization Act (NDAA).
• The news comes as American and allied auto and battery makers struggle to secure supplies of critical battery metals that comply with guidelines for incentives under the Inflation Reduction Act.
  

NEW YORK, Dec. 12, 2023 (GLOBE NEWSWIRE) -- TMC the metals company Inc. (Nasdaq: TMC) (“TMC” or the “Company”), an explorer of the world’s largest estimated undeveloped source of critical battery metals, today welcomed a letter by thirty-one Members of the House of Representatives calling upon the Department of Defense to address the national security implications of deep-sea nodule collection as part of its mandate to ensure the stability and strength of critical minerals used for defense and clean energy technologies like batteries and renewable energy infrastructure.

In their letter to U.S. Secretary of Defense Lloyd Austin, dated December 7, 2023, Members of Congress — including Representatives Robert Wittman (R-VA) and Elise Stefanik (R-NY) — highlight the strategic importance of polymetallic nodules, particularly in light of China's accelerating investment in the seafloor mineral space. They also asked for further clarification on the national security implications of deep-sea mining and the degree to which the Pentagon had assessed under the Defense Production Act, how “to increase domestic processing capacity for deep-sea polymetallic nodules no later than 2025.”

TMC Chairman and CEO Gerard Barron said, “The strong stance taken by Congressman Wittman and his colleagues marks a significant shift in the recognition of the potential of deep-sea polymetallic nodules as a key resource for America’s national security and economic prosperity. Their call for action reflects an understanding of the urgent need for secure mineral supply chains, which is crucial for the West to gain a competitive edge in the energy transition.”

In November, a bipartisan coalition led by Senator Lisa Murkowski (R-AK) re-introduced a resolution calling on the U.S. Senate to ratify the UN Convention on the Law of the Sea (UNCLOS) and arguing that “the longer we sit out, the longer the rest of the world will continue to set the agenda of maritime domain, from seabed mining to critical subsea infrastructure.” That same month, five Members of the US House of Representatives from Texas urged the Department of Defense to support the use of federal resources under the Defense Production Act towards TMC’s feasibility study for nodule processing along the Texas Gulf Coast. In a letter to the Assistant Secretary of Defense for Industrial Base Policy, Laura D. Taylor-Kale, the Members wrote: “The applicant seems to have the ability to produce battery-grade materials at commercial facilities in North America at pilot scale. The scope of the submission focuses solely on U.S. processing and appears to offer the Department of Defense the opportunity to re-shore critical mineral supply lines.”

Over recent years, TMC has welcomed letters from Congressional Leaders including the House Armed Services Committee as well as former Military leaders urging the Biden Administration to assess domestic processing of seafloor polymetallic nodules as a means to secure key energy transition metals and “close national security vulnerabilities.” In March last year, Mr. Barron wrote to the Senate Energy and Natural Resources Committee, in which he noted, “Support from the U.S. Government for the development of the polymetallic nodules resource and TMC’s first project, NORI-D, would unlock access to the resource without overcoming legislative hurdles to ratify the United Nations Convention on the Law of the Sea.”

About The Metals Company
The Metals Company is an explorer of lower-impact battery metals from seafloor polymetallic nodules, on a dual mission: (1) supply metals for the global energy transition with the least possible negative impacts on planet and people and (2) trace, recover and recycle the metals we supply to help create a metals commons that can be used in perpetuity. The Company through its subsidiaries holds exploration and commercial rights to three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean regulated by the International Seabed Authority and sponsored by the governments of Nauru, Kiribati and the Kingdom of Tonga. More information is available at www.metals.co.

Contacts
Media | media@metals.co
Investors | investors@metals.co

Forward Looking Statements

This press release contains “forward-looking” statements and information within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “plans,” “possible,” “potential,” “seeks,” “will” and variations of these words or similar expressions, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, TMC’s expectations with respect to the U.S. Senate’s ratification of UNCLOS. The Company may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements as a result of various factors, including, among other things: the Company’s strategies and future financial performance; the International Seabed Authority’s (“ISA”) ability to timely adopt the Mining Code and/or willingness to review and/or approve a plan of work for exploitation under the United Nations Convention on the Laws of the Sea (UNCLOS); the Company’s ability to obtain exploitation contracts or approved plans of work for exploitation for its areas in the Clarion Clipperton Zone; regulatory uncertainties and the impact of government regulation and political instability on the Company’s resource activities; changes to any of the laws, rules, regulations or policies to which the Company is subject, including the terms of the final Mining Code, if any, adopted by ISA and the potential timing thereof; the impact of extensive and costly environmental requirements on the Company’s operations; environmental liabilities; the impact of polymetallic nodule collection on biodiversity in the Clarion Clipperton Zone and recovery rates of impacted ecosystems; the Company’s ability to develop minerals in sufficient grade or quantities to justify commercial operations; the lack of development of seafloor polymetallic nodule deposit; the Company’s ability to successfully enter into binding agreements with Allseas Group S.A. and other parties in which it is in discussions, if any; uncertainty in the estimates for mineral resource calculations from certain contract areas and for the grade and quality of polymetallic nodule deposits; risks associated with natural hazards; uncertainty with respect to the specialized treatment and processing of polymetallic nodules that the Company may recover; risks associated with collective, development and processing operations, including with respect to the development of onshore processing capabilities and capacity and Allseas Group S.A.’s expected development efforts with respect to the Project Zero offshore system; the Company’s dependence on Allseas Group S.A.; fluctuations in transportation costs; fluctuations in metals prices; testing and manufacturing of equipment; risks associated with the Company’s limited operating history, limited cash resources and need for additional financing; risks associated with the Company’s intellectual property; Low Carbon Royalties’ limited operating history and other risks and uncertainties, any of which could cause the Company’s actual results to differ from those contained in the forward-looking statements, that are described in greater detail in the section entitled “Risk Factors” in TMC’s Annual Report on Form 10-K for the year ended December 31, 2022, filed by TMC with the Securities and Exchange Commission (“SEC”) on March 27, 2023, as updated and/or supplemented by TMC’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, filed with the SEC on August 14, 2023, and in TMC’s other future filings with the SEC, including TMC’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, filed with the SEC on November 9, 2023. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company expressly disclaims any obligation to update any forward-looking statements contained herein, whether because of any new information, future events, changed circumstances or otherwise, except as otherwise required by law.

FAQ

What is TMC the metals company Inc. (Nasdaq: TMC)?

TMC the metals company Inc. (Nasdaq: TMC) is an explorer of critical battery metals and is involved in deep-sea polymetallic nodule collection and processing.

What is the focus of TMC the metals company Inc. (Nasdaq: TMC)?

TMC focuses on securing key energy transition metals and closing national security vulnerabilities through the exploration and processing of deep-sea polymetallic nodules.

Who has supported TMC the metals company Inc. (Nasdaq: TMC)?

TMC has received support from Members of Congress, including the House Armed Services Committee and former Military leaders, as well as bipartisan coalitions.

What are the key initiatives of TMC the metals company Inc. (Nasdaq: TMC)?

TMC is focused on assessing domestic processing of seafloor polymetallic nodules to secure key energy transition metals and close national security vulnerabilities.

What is the significance of deep-sea polymetallic nodules for TMC the metals company Inc. (Nasdaq: TMC)?

Deep-sea polymetallic nodules are considered a key resource for America’s national security and economic prosperity, according to TMC Chairman and CEO Gerard Barron.

What has the U.S. Government been urged to do in relation to TMC the metals company Inc. (Nasdaq: TMC)?

The U.S. Government has been urged to assess domestic processing of seafloor polymetallic nodules as a means to secure key energy transition metals and close national security vulnerabilities, supporting TMC's initiatives.